Managers in a department store have decided that the shoe department is not a profitable part of the store and that it would be better suited to being an independent organization that rented space from the store.What type of strategy is demonstrated if the shoe department is separated from the department store into a separate entity?
A)merger
B)divestiture
C)bankruptcy
D)growth

Question

Quizplus · Accepted Answer

Divestiture is the process of selling or spinning off a business or product line that is not deemed profitable or strategic. In this situation, the shoe department is being separated from the department store and would become an independent entity, which is an example of divestiture.

Managers in a Department Store Have Decided That the Shoe